{"id":907,"date":"2021-05-11T00:47:21","date_gmt":"2021-05-11T00:47:21","guid":{"rendered":"https:\/\/www.degencpa-titan.com\/test\/?p=907"},"modified":"2021-05-24T20:55:42","modified_gmt":"2021-05-24T20:55:42","slug":"what-is-benchmarking","status":"publish","type":"post","link":"https:\/\/www.degencpa-titan.com\/test\/what-is-benchmarking\/","title":{"rendered":"What Is Benchmarking?"},"content":{"rendered":"

Benchmarking is the process of comparing your own organization, operations, or processes to prior period results and\/or to other organizations in your industry or in the broader marketplace.\u00a0 Many organizations compare themselves to competitors to identify and eliminate gaps in service or product delivery or to gain a competitive edge.<\/span><\/p>\n

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The most common driver for benchmarking comes from the internal perspective that a process or approach can be improved. Organizations will collect data on their own performance at different points in time and under different circumstances and identify gaps or areas for strengthening.<\/span><\/p>\n

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The data gathered in competitive benchmarking (benchmarking against others) offers specific insights into a competitor’s processes and thinking.\u00a0 It is also used to generate ideas for improving areas such as procedures, methodologies, customer loyalty and satisfaction, market segmentation, pricing, profit margins and expense reduction practices, along with just about any other area of one\u2019s business.<\/span><\/p>\n

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Looking beyond your own industry for best-in-class performance for particular processes or functions is an excellent way to challenge your firm to rethink long-standing assumptions and practices. \u00a0For example, Southwest Airlines famously analyzed the processes, approaches, and speed of automobile racing pit crews to gain ideas for improving their airplane turn-around time at the gate. The outcome of this benchmarking study is reported to have helped Southwest reconfigure their gate maintenance, cleaning, and customer loading operations, and to have saved the firm millions of dollars per year.<\/span><\/p>\n

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Many industries and consumer related organizations publish comparative data that can be used for these purposes.\u00a0 Similarly, many professional coaches and consultants can acquire this information as well.\u00a0 Too, much valuable information can be gleaned from observation.<\/span><\/p>\n

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Because any process, product, function or result in a business is eligible for benchmarking, methodologies vary. \u00a0The benchmarking process typically consists of:<\/span><\/p>\n

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